By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The International Monetary Fund (IMF) Wednesday endorsed Kenya’s economic reforms for the last three (3) years.

This is coming on the heels of the Fund’s mission led by Domenico Fanizza to conduct the sixth and last review under the three-year Extended Credit Facility (ECF) arrangement approved for the country in January 2011.

“Kenya’s economic reforms over the last three years have paid off. The economy has proved resilient in the face of exogenous shocks such as the 2011 drought, and stagnating demand in traditional export and tourism markets as a result of the global financial crisis,” Fanizza said.

According to him, budgetary discipline of the country has helped ensure fiscal and external sustainability, while still providing sufficient resources to implement the new Constitution and start fiscal devolution.

He affirmed that Kenya’s monetary policy has succeeded in bringing inflation down and cementing expectations of low and stable prices. “Economic growth has remained robust and is on an upward trend, supported by strong domestic demand,” the IMF mission head said.

Fanizza said the country’s international reserves have risen to more than $6 billion, and the external current account balance excluding capital imports—which have surged because of oil exploration— has improved.

The IMF mission observed that following the sound economic reforms in Kenya, investor interest in its economy has gained momentum, translating into strong performance on the stock market and the establishment of regional operations by foreign corporations and financial institutions.

“These reforms have set the stage for stronger, more inclusive, and lasting economic growth, but challenges persist. Efforts to anchor economic stability through sound fiscal and monetary policies and market-oriented reforms should redouble to build upon the foundations of success. In particular,” Fanizza said.

This is coming on the heels of tragic events that hit Nairobi September 21 as Somali al Shabaab Islamists gunmen entered a shopping mall where at least about 70 people were killed in a siege that lasted close to five (5) days.